I know most guys here are Nikon and Canon guys when it comes to DSLRs, but honestly, this is a very good deal if you don't have a system. If you can find it, Circuit City has Sony A100 DSLR kits on clearance. Body + 18-70mm lens (aka Sony DSLR-A100K) for $369 and Body + 18-200mm lens (DSLR-A100H) for $404. I've also heard that some other places (especially department stores like Sears) will price match this...

It is a good system.... but only if you are not planning to upgrade... Otherwise the D40 or Rebel Xti would be waay better, if only for the sheer selection of equipment you can upgrade to, or the cheaper, better designed lenses.